As mortgage rates fluctuate based on decreasing housing inventory volume, the appraisal market is more volatile than ever in key areas such as urban and rural communities states like California and Texas. With higher rates, lower transaction volumes usually plague the industry, translating to fewer appraisals as homeowners hunker down with their lower rates. Homes are still evolving in terms of technology and energy consumption, raising the need for accurate and efficient appraisals to help lenders approve mortgage loans with greater accuracy and efficiency. Low transaction volumes may soon be a thing of the past. Industry professionals expect an increase in transactions following the Fed’s recent rate cuts, leading to an increase in appraisal demands. Only automation and technology can tackle this new demand effectively, and that’s where Jaro comes into play.
Jaro stands tall as the only end-to-end appraisal platform on the market. Jaro’s products are designed to offer new and improved solutions to help lenders tackle modern-day appraisals with pinpoint accuracy designed to eliminate bias and urban pricing discrepancies as homebuyers migrate between the suburbs and major cities. Jaro uses AI-driven QC tools and advanced automation tools are designed to guide lenders regardless of where they are in the appraisal process. Users report a 30% reduction in turnaround times since implementing Jaro—and that’s only in two months. Jaro is committed to saving time and money lenders in a constantly-evolving real estate market.
Confronting urban housing price volatility concerns
It’s no secret that companies have been pushing employees out of the office and back into remote work status to save money and boost productivity. In fact, almost 20% of modern companies are fully remote as of 2024, according to the U.S. Career Institute. This trend had a profound impact on the housing market. After all, what good is a work-from-home job without a cozy home to work from? More employees moved to suburban areas to set up their new lifestyles. Later on, declining rates opened up supply in urban markets where inventory would normally be locked up due to buyers staying put with low interest rates. Now, suburban dwellers who migrated from urban areas to suburban areas are returning to cities, driving home values up in those areas. Couple that with increasing interest in energy-efficient homes, smart home technology, followed by new Gen-Z buying trends, and you’ve got a recipe for fluctuating home values, and your standard appraiser may be slow to adjust.
Now, Fannie Mae and Freddie Mac are currently pushing data standardization to help lenders keep up with evolving appraisal needs. Jaro is ahead of Fannie and Freddie. With its AI tools designed to help lenders accelerate their workflow by automating data collection and risk analysis, Jaro is speeding up traditional steps and predicting market trends based on historical data.
Best practices to combat racial and keyword bias
Appraisal bias is a contributing factor for the large wealth gap in areas of color across the United States. An appraiser’s valuation directly impacts a home’s value, and that valuation stems from elements like keywords, neighborhood history, square footage, etc. Worse yet, appraisers often rely on automated reporting tools that can’t flag bias. Traditional technology isn’t great at cross referencing larger data sets against a specific appraisal report. This brings racial and urban bias into the appraisal value equation. For example, a keyword indicating that a home is in a black or hispanic neighborhood may impact the perception of the appraisal’s location, ultimately affecting the property value. Jaro’s AI QC tools can handle that workload with accuracy to extract and highlight the level of potential bias and compare it against other reports to establish a bias benchmark, so to speak. Properties in urban neighborhoods, which tend to be racially diverse, won’t suffer under the heel of racial bias and inaccurate appraisal reports with Jaro’s AI QC tools on the hunt for errors. Jaro gives every lender the tools to offer fair valuations to all buyers.
Foundational principles
Jaro seeks to go beyond standard appraisal product offerings by focusing on three key principles when assisting customers: innovation, transparency, and efficiency. How does this impact lenders? Jaro offers cutting-edge technological solutions that essentially simplify the appraisal process and speed things up for lenders and AMCs when evaluating homes that may be more difficult to accurately evaluate due to location or upgrade history. The company’s automated appraisal management system helps customers work faster and more efficiently by removing the possibility of human error, contributing to a quicker turnaround time and faster loan disbursements. The online platform is completely malleable to a lender’s specific needs, making it a one-size-fits-all solution to appraisals. Complexity doesn’t matter to Jaro’s platform. There’s nothing it can’t handle with its JaroDesk, JaroKit, and JaroInspect tech services.
What sets Jaro apart?
Jaro’s automated workflow management system is more than just another AI-driven tool on the market. Customers typically include the system into their operations for its unique flexibility. Managing appraisal orders, tracking status, and QC aren’t a problem for a system designed to make lenders’ lives easier. You can also automate manual tasks like vendor selection, invoicing, and compliance checks to maintain excellent standards. Jaro has a feature for everything, including order management, reporting and analytics help, client communications, panel management, payroll, and more. It also has solutions for appraisal report writing and data gathering, along with a mobile app for appraisals, floor plans, and property inspections. Each of Jaro’s primary tools—JaroDesk, JaroInspect, and JaroKit—are designed to simplify the appraisal process. Here’s what they offer:
JaroDesk
Jaro’s appraisal order management platform covers the entire appraisal process, including the follow components:
- Order management: Reviews orders and assigns them to eligible users for completion on the other end
- Order workflow and panel management: Makes sure all task assignment and appraiser panels are smooth and free of mistakes
- QC and Quality Assurance: Ensures that report and analyses are delivered to clients effectively and expeditiously
- Payments and Accounting: Manages payments and accounting tasks for completed appraisals
- Client Report Delivery: Reports and analyses are delivered to clients on time
JaroInspect
This mobile app is designed for compatibility with a smartphone or tablet. It makes property inspections simple, allowing appraisers to take their mobile devices with them to inspect properties on the go. Key features include:
- On-site data capture: Appraisers can gather data on-site in real time, making the property inspection more efficient
- Data verification: Makes sure that property data is accurate and up to date
- LiDAR scanning: Software that make sure property measurement details are precise while improving data accuracy
JaroKit
This tool simplifies the appraisal and inspection process by adding property data sources with AI tech to help users with three primary competencies:
- Gathering property data: Draws relevant data from properties quickly from integrated data sources
- Analysis and reporting: Make analysis and reporting automatic, removing manual effort from the equation
- Inspection report: JaroKit knocks out reports with AI tools to speed up workflow
Prepared for the future
Jaro is no stranger to changing trends in the real estate industry. In fact, the platform was designed with the intention of guiding lenders into an uncertain future when it comes to new appraisal needs. Now, Jaro anticipates a huge surge in appraisals as rates decline and housing supply increases. Jaro’s automated appraisal system is designed for scale, regardless of how big or small a mortgage company or AMC is. Jaro is heavy duty, and lenders can use that if they plan on making profit in the new market. Lenders won’t have to sacrifice quality or speed, no matter how many appraisals are lined up in the queue. Integrating Jaro is easy, and it’ll offer appraisal updates, status tracking, and detailed reporting tools to help lenders tackle the coming surge in appraisal demands.
